Financial Results for the First Quarter Ended January 31, 2019
[Japan GAAP] (Consolidated)
Date:

March 1, 2019

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts:

Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: March 8, 2019
Date for Dividend Payment:

Not applicable to this financial quarter

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Not preparedBriefing Session for Quarterly Operating Results: Not planned* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the First Quarter Ended January 31, 2019(1) Results of Operation (Consolidated)

Quarter Ended January 31, 2019
Quarter Ended January 31, 2018

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions ofYen
Percent
Yen
Percent
Yen
Percent
10,160
6.8
587
57.4
594
58.7
9,517
12.1
373
378.7
374
533.6

Quarter Ended January 31, 2019
Quarter Ended January 31, 2018

Net Income Attributable toOwners of the Parent
Millions ofYen
Percent
390
54.6
252
-

Net Income per Share

Fully Diluted Quarterly
Net Income per Share

Yen
39.12
25.30

Yen
-(Note) Comprehensive income
First Quarter ended January 31, 2019: 314 million yen (-8.0%)

First Quarter ended January 31, 2018: 341 million yen (41.7%)(2) Financial Condition (Consolidated)

Quarter Ended January 31, 2019Year Ended October 31, 2018

Total Assets (A)(Millions of Yen)
36,77337,331Net Assets (B)(Millions of Yen)
27,94527,876

Net Assets Ratio(B) / (A) (Percent)
76.0
74.7

(Reference) Net assets
First Quarter ended January 31, 2019: 27,945 million yen

Year Ended October 31, 2018: 27,876 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2018Year Ending October 31, 2019Year Ending October 31, 2019
(Prospect)First
Quarter-Interim
Term
22.50

Annual Dividend (Yen)
ThirdEnd ofQuarter
Fiscal Year
24.50

23.50

(Note) Revisions since the most recently released dividend projection: None-23.50

Annual
47.00
47.00

3. Forecast for Earnings for the Year Ending October 31, 2019 (Consolidated)(Percent change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year
44,300
4.6
2,300
-3.3
2,300
-1.5
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
1,500-0.9
150.33(Note) Revisions since the most recently released dividend projection: NoneNotes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of simplified accounting method and the specific accounting method: None
(3) Changes of the principles, procedures, and representation of the accounting policies
1) Change due to revision of accounting standard: None
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At January 31, 2019: 10,533,200 shares

At October 31, 2018: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At January 31, 2019: 554,861 shares

At October 31, 2018: 554,861 shares

3) Number of average shares (accumulated quarterly total)
At January 31, 2019: 9,978,339 shares

At January 31, 2018: 9,978,383 shares*The quarterly earnings report is exempt from the quarterly review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors.
Please refer to the Financial Results for the Quarter (Attachments) on page 3, (3) [Analysis of Future Forecast onQuarterly Consolidated Earnings Forecast] of 1. [Qualitative Information on Quarterly Consolidated OperatingResults] for the operating results forecast.

Table of Contents (Supporting Data)

1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................2(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast.......................................................3
2. Quarterly Consolidated Financial Statement and Notes.................................................................................................4(1) Quarterly Consolidated Balance Sheet................................................................................................4(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
Income.......................................................................................................................................................................6Quarterly Consolidated Statements of Income.....................................................................................................6Quarterly Consolidated Statements of Comprehensive Income.........................................................................7(3) Notes on Quarterly Consolidated Financial Statements.......................................................................................8(Note for premise of going concern) .................................................................................................8(Notes for significant changes in shareholder’s equity)..........................................................................................8(Additional information)................................................................................................................8(Segment information).........................................................................................................................811. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the first quarter, Japan’s economy maintained its gradual recovery trend. Domestic demand remained steady,as personal consumption remained brisk and capital investment continued to recover, and exports managed a returnto growth as well, although the strength of their recovery was weak. Overseas, however, the U.S. economy sustained
its steady growth, but Europe’s economy remained lackluster, and the sense of a slowdown affecting the economies
of China and other newly developing countries intensified. In the months ahead, the rising sense of uncertainty
surrounding the global economy resulting from circumstances such as further heightened trade friction between theU.S. and China and Great Britain’s pending withdrawal from the EU will require careful attention.
Given these circumstances, net sales for the Tomoe Engineering Group for the consolidated first quarter
increased 6.8% from the same period last year to 10,160 million yen because of increasing sales in both theMachinery & Equipment Business and Chemical Products Business. From an earnings aspect, operating income
was 587 million yen, 57.4% up from the same period last year because of higher income in the Machinery &Equipment Business, while ordinary income came to 594 million yen, 58.7% up from the same period last year. Net
income attributable to owners of the parent was 390 million yen, 54.6% up from the same period last year.
Operating results by respective segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, net sales of machinery, equipment and works for domestic private sector
demand decreased, but on the other hand net sales of components and repair in all fields, and net sales of machineryfor overseas remained steady. As a result, net sales for consolidated first quarter were 2,128 million yen, 33.4% up
from the same period last year.
With respect to earnings, operating profit was 164 million yen recovered from operating loss of 94 million yen in thesame period last year because of increased profits in the field of components and repair with high margins, andmachinery for overseas.

(Chemical Products Business)
In the Chemical Products Business, net sales of materials for motor vehicles, housing and construction applications in
the industrial materials sector, and materials for semiconductor manufacturing devices in the advanced materials sector
were robust. As a result, net sales of consolidated first quarter were 8,031 million yen, 1.4% up from the same period
last year.
With respect to earnings, operating income was 422 million yen, 9.6% down from the same period last year, against a
backdrop of a fall in revenue from the electronics materials sector, the fine chemicals sector and Hong Kong-based business.
(2) Analysis of Financial Condition
Total assets as of the end of the consolidated first quarter under review were 36,773 million yen, down 1.5% or 558
million yen from the end of the previous consolidated fiscal year. This mainly reflected an increase of 534 million yen
in electronically recorded monetary claims, and an increase of 474 million yen in work in process, a decrease of 574
million yen in notes and accounts receivable–trade, and a decrease of 1,095 million yen in cash and deposits.
Liabilities were 8,827 million yen, down 6.6% or 628 million yen from the end of the previous consolidated fiscal year,
mainly because of an increase of 336 million yen in electronically recorded monetary debt, a decrease of 649 million
yen in provision for bonuses, a decrease of 500 million yen in income tax payable.
2Net assets stood at 27,945 million yen, 69 million yen or 0.2% up from the end of the previous consolidated fiscal year.
This mainly reflected a decrease of 40 million yen in valuation difference on available-for-sale securities, a decrease of
28 million yen in foreign currency translation adjustment, and an increase of 145 million yen in retained earnings.
As a result of the above changes, the equity ratio at the end of the consolidated first quarter under review
increased by 1.3 point compared with the end of the previous consolidated fiscal year to 76.0%.
(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending in October 31, 2019 thatwere announced in the “Financial Results for the Fiscal Year Ended October 31, 2018 [Japan GAAP] (Consolidated)”released on December 7, 2018.

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2. Quarterly Consolidated Financial Statement(1) Quarterly Consolidated Balance Sheets (First Quarter)(Thousands of Yen)
AssetsEnd of Previous YearEnd of First Quarter(October. 31, 2018)(January 31, 2019)

Current Assets
Cash and Deposits

9,354,256

8,259,142

Notes and Accounts Receivable-Trade

11,834,551

11,260,470

Electronically Recorded Monetary Claims

2,183,842

2,718,397

Merchandise and Finished Goods

3,685,115

3,511,842

Work in Process

981,660

1,456,071

Raw Materials and Supplies

667,846

916,474

Others183,711219,261

Allowance for Doubtful Accounts
Total Current Assets-67,114-65,656

28,823,870

28,276,003

4,459,308

4,451,958

Accumulated Depreciation-1,831,356-1,864,553

Buildings and Structures, Net

2,627,951

2,587,404

Machinery, Equipment and Vehicles

3,697,837

3,787,308-3,304,595-3,285,194

393,242

502,114

1,931,089

1,930,922

10,606－980,958

1,000,287-901,758-911,171

79,19989,1155,042,089

5,109,557

109,792

95,930Investment Securities

1,374,561

1,316,509

Guarantee Deposits

340,386

339,146

1,554,938

1,557,761

Deferred Tax Assets

16,436

10,353

Others

92,654

90,611

Allowance for Doubtful Accounts-22,871-22,871

Total Investments and Other Assets

3,356,107

3,291,511

Total Noncurrent Assets

8,507,988

8,496,999

Total Assets

37,331,859

36,773,003

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, NetLandConstruction in progress
Others
Accumulated Depreciation
Others, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets4

(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2018)(January 31, 2019)

Liabilities and Net Assets
Liabilities
Current Liabilities
Notes and Accounts Payable-Trade

4,193,451

3,871,083

Electronically Recorded Monetary Debt

1,857,112

2,193,935

Accounts Payable-Others

600,382622,763

Income Taxes Payable

539,919

39,134

Advances Received

70,030327,082

Provision for Bonuses

1,081,025

431,072

Provision for Directors' Bonuses

70,00017,964

Allowance for Product Warranty

160,295

192,148

Others217,988

312,759

8,790,206

8,007,944

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

57,90558,692

Deferred Tax Liabilities

601,913754,963

Total Noncurrent Liabilities

665,279

819,115

Total Liabilities

9,455,485

8,827,060

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

24,953,779

25,099,631

Treasury Stock-363,977-363,977

Total Shareholders’ Equity

27,134,422

27,280,274

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

433,098

393,041130-2,755

Foreign Currency Translation Adjustment

186,221

158,133

Total Adjustment on Net Defined Benefit

122,501

117,249

Total Accumulated Other Comprehensive Income

741,950

665,668

Total Net Assets

27,876,373

27,945,942

Total Liabilities and Net Assets

37,331,859

36,773,003

Net Assets
Shareholders’ Equity
Capital Stock5

(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income (First Quarter)(Thousands of Yen)First Quarter Ended
January 31, 2018

First Quarter Ended
January 31, 2019

Net Sales

9,517,730

10,160,391

Cost of Sales

7,480,483

7,843,306

2,037,246

2,317,084

1,664,090

1,729,828

373,155

587,256

Interest Income

326

346

Dividends Income

9,488

10,835

Rent Income

1,717

1,792

－

1,107

8,117

7,452

19,651

21,535Interest Expenses

7,693

11,286

Commission Paid756

756

Sales Discount

1,445

2,031

Foreign Exchange Losses

7,210－998

198

Total Non-Operating Expenses

18,103

14,272

Ordinary Income

374,702594,518

Loss on Evaluation of Investment Securities－6,175

Total Extraordinary Losses－6,175

Income before Income Taxes and Minority Interests

374,702588,342

Income Taxes-Current

23,63917,324

Income Taxes-Deferred

98,567

180,697

Total Income Taxes

122,206

198,022Net Income

252,495

390,320Net Income Attributable to252,495

390,320Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Foreign Exchange GainsOthers
Total Non-Operating Income
Non-Operating Expenses

OthersExtraordinary Losses

Owners of the Parent6Quarterly Consolidated Statements of Comprehensive Income (First Quarter)
First Quarter Ended

First Quarter Ended

January 31, 2018

January 31, 2019

252,495

390,320

Valuation Difference on Available-for-sale Securities

57,360-40,056

Deferred Gains or Losses (-) on Hedges-4,963-2,886

Foreign Currency Translation Adjustment

19,218-28,087

Net Defined Benefit

17,060-5,251

Total Other Comprehensive Income

88,675-76,282

341,171314,038

341,171314,038Net Income
Other Comprehensive Income

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of theParent7

(3) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Additional information)
Beginning from the first quarter consolidated accounting period, the Company has applied the Partial Revision of“Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan Statement No. 28), andhas classified the deferred tax assets in Investments and Other Assets and the deferred tax liabilities in Noncurrent
Liabilities.
(Segment information, etc.)[Segment information]
First Quarter Ended January 31, 2018
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

1,596,009

7,921,720

9,517,730

9,517,730----Total

1,596,009

9,517,730

9,517,730

Segment Profit or Loss (-)-94,819

7,921,720
467,975

373,155

373,155

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales amongSegments or AmountTransferred

Total

Grand Total(Note) The total amount of segment profit or loss is identical to the operating income reported on the Quarterly Consolidated Statements ofIncome.

First Quarter Ended January 31, 2019
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

２,128,807

8,031,584

10,160,391

10,160,391----Total

２,128,807

10,160,391

10,160,391

Segment Profit

164,283

8,031,584
422,972

587,256

587,256

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

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